For countries looking to expand their industries, achieve sustained economic growth, and remain globally competitive, foreign direct investment (FDI) is essential.
- Business Insider Africa presents the countries with the largest FDI funding in 2023.
- This list is courtesy of the International Monetary Fund.
- The United States ranks number 1 on this list.
In addition to providing funding, foreign direct investments also introduces new technology, know-how, and skills that eventually boost the local economy.
As per the latest data from the International Monetary Fund, released on the 20th of February, 2025, “Global foreign direct investment grew again in 2023 after declining the previous year.”
The IMF’s most recent Coordinated Direct Investment Survey, which provides comprehensive data on FDI across the globe, showed that inward direct investment increased by $1.75 trillion, or 4.4% to reach a record $41 trillion.
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Most regions reported an increase in FDI, with North and Central America, Europe, and Central and South Asia making the largest contributions.
While direct investment from advanced countries to emerging markets and developing economies increased by $538 billion, or 7.6%, direct investment between advanced economies increased by $880 billion, or 3.6%.
“The United States extended its lead as the top destination for direct investment. Singapore recorded the largest gain in 2023, with its position rising $307 billion, followed by $227 billion for the United States and $164 billion for Germany,” the IMF report states.
“Meanwhile, the Netherlands and Luxembourg posted the steepest declines but remained in the top five, alongside the United States, China, and the United Kingdom,” it adds.
With that said, here are the countries with the highest FDI in 2023, according to the IMF’s report.
Top 10 countries that received the highest foreign direct investment as per the latest IMF data
| Rank | Country | FDI recipients, billions of USD |
|---|---|---|
| 1. | United States | 5,394 |
| 2. | The Netherlands | 3,703 |
| 3. | China | 3,650 |
| 4. | Luxembourg | 2,864 |
| 5. | United Kingdom | 2,619 |
| 6. | Singapore | 2,382 |
| 7. | Hong Kong | 2,052 |
| 8. | Ireland | 1,436 |
| 9. | Germany | 1,256 |
| 10. | Switzerland | 1,154 |
